The circular economy (CE) can serve as a crucial framework for revolutionizing the tourism sector, particularly from the perspective of industry experts. This approach emphasizes sustainability and resource efficiency, enabling firms to innovate and adapt their practices in alignment with CE principles. By integrating these strategies, the tourism industry can foster a more sustainable future, benefitting both the environment and local economies. Tourism and hospitality enterprises are currently undergoing a transformation, as indicated by their environmental initiatives, which point towards a commitment to long-term sustainability in the workplace. This research aims to explore how the circular economy (CE) contributes to low-carbon behavior (LB) and enhances environmental performance (EP). The study employed questionnaires and gathered 180 responses from a sample of LinkedIn professionals with a minimum of five years of experience in the hospitality and tourism sectors in both Saudi Arabia and Egypt. The hypotheses of the study were analyzed using partial least squares structural equation modeling. Key findings from the research include: First, CE positively influences LB. Second, the results indicated that LB has a beneficial impact on EP. Lastly, the research confirmed that eco-friendly behavior (EB) moderates the relationship between LB and EP. These findings contribute to the ongoing dialogue regarding CE and provide insights on how to promote both LB and EP.